GPB Capital, a New York-based alternative asset management firm, has issued a series of frequently asked questions to provide additional details on the various ongoing investigations being conducted by state and federal authorities.
As reported by The DI Wire, GPB confirmed that representatives from the Federal Bureau of Investigation and the New York City Business Integrity Commission made an unannounced “visit” to the company’s headquarters in Manhattan last Thursday. GPB said that the agencies obtained a search warrant to collect materials from the premises and believes that the visit was a continuation of previous ongoing inquiries.
Specifically, the company disclosed that in the summer of 2018 it received a subpoena from the U.S. Attorney’s Office – Eastern District of New York that requested documents related to a waste management fund in connection with the NYC Business Integrity Commission’s investigation.
Additionally, the firm received subpoenas from the Securities and Exchange Commission and the New Jersey Bureau of Securities and said that it is cooperating with the various agencies and their document requests.
While GPB was not told the cause of the investigations, other than they are in connection with potential violations of general securities laws and regulations, the company pointed out that much of the information requests concern issues raised by former operating partner, Patrick Dibre.
GBP sued Dibre in July 2017 for allegedly reneging on the sale of multiple car dealerships in the New York metropolitan area, and the company is seeking the return of $42 million it had paid to the former business partner.
The company also pointed out that it has not been named in any action by any regulatory authority, is not the target of any active investigation, and remains focused on completing its audits and providing updated performance information.
In April 2018, GPB failed to produce audited financial statements and is in the process of completing its audits after hiring a new auditor, EisnerAmper LLP, to replace Crowe LLP, which resigned “due to perceived risks…that fell outside of their internal risk tolerance parameters.”
“Once GPB issues audited financial statements, we will provide updated performance information,” the company said in the FAQ. “When this process has been completed, we will work to make the required SEC filings, where applicable, and look forward to providing all investors with regular updates related to their investments.”
“We recognize the lack of information, particularly around performance, has been cause for concern,” added GPB. “We are fully committed to completing these outstanding deliverables, and once completed, implementing a robust communication plan for our investors.”
GPB focuses on acquiring income-producing private companies in various industries, including the automotive retail and waste management sectors, and has raised $1.5 billion in investor equity through various private placement offerings.